Correlation Between Xinke Material and Guangzhou Tinci
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By analyzing existing cross correlation between Xinke Material and Guangzhou Tinci Materials, you can compare the effects of market volatilities on Xinke Material and Guangzhou Tinci and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Xinke Material with a short position of Guangzhou Tinci. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinke Material and Guangzhou Tinci.
Diversification Opportunities for Xinke Material and Guangzhou Tinci
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Xinke and Guangzhou is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Xinke Material and Guangzhou Tinci Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Tinci Materials and Xinke Material is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Xinke Material are associated (or correlated) with Guangzhou Tinci. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Tinci Materials has no effect on the direction of Xinke Material i.e., Xinke Material and Guangzhou Tinci go up and down completely randomly.
Pair Corralation between Xinke Material and Guangzhou Tinci
Assuming the 90 days trading horizon Xinke Material is expected to generate 0.98 times more return on investment than Guangzhou Tinci. However, Xinke Material is 1.02 times less risky than Guangzhou Tinci. It trades about 0.29 of its potential returns per unit of risk. Guangzhou Tinci Materials is currently generating about 0.14 per unit of risk. If you would invest 189.00 in Xinke Material on September 26, 2024 and sell it today you would earn a total of 197.00 from holding Xinke Material or generate 104.23% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Xinke Material vs. Guangzhou Tinci Materials
Performance |
Timeline |
Xinke Material |
Guangzhou Tinci Materials |
Xinke Material and Guangzhou Tinci Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Xinke Material and Guangzhou Tinci
The main advantage of trading using opposite Xinke Material and Guangzhou Tinci positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinke Material position performs unexpectedly, Guangzhou Tinci can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Guangzhou Tinci will offset losses from the drop in Guangzhou Tinci's long position.Xinke Material vs. Wanhua Chemical Group | Xinke Material vs. Shandong Gold Mining | Xinke Material vs. Rongsheng Petrochemical Co | Xinke Material vs. Inner Mongolia BaoTou |
Guangzhou Tinci vs. Zijin Mining Group | Guangzhou Tinci vs. Wanhua Chemical Group | Guangzhou Tinci vs. Baoshan Iron Steel | Guangzhou Tinci vs. Shandong Gold Mining |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Commodity Directory module to find actively traded commodities issued by global exchanges.
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